The Nigerian National Petroleum Company Limited (NNPC) and several upstream gas producers yesterday signed long-term Gas Supply Agreements (GSAs) with Nigeria Liquefied Natural Gas Limited (NLNG) for the supply of 1.29 billion standard cubic feet per day (bscf/d) of feed gas.
At the signing ceremony in Abuja, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, said President Bola Tinubu is determined to ensure that oil companies which exited Nigeria in the past are encouraged to return, following fresh incentives introduced by the government.
The 20-year agreements, with extension options, were concluded between NLNG, NNPC and other gas suppliers including Amni International Petroleum Development Company Limited; Sunlink Energies and Resources Limited; First Exploration & Petroleum Development Company Limited; SNEPCo; NNPC Gas Marketing Limited; NNPC E&P Limited; Shell Nigeria Gas Solutions Limited; Oando Group; and Aradel Holdings.
According to NNPC, the GSAs will help bridge the long-standing shortfall in upstream gas supply and represent a significant boost to the government’s energy transition plan and gas sector reforms, designed to strengthen energy security and economic growth.
Group Chief Executive Officer of NNPC, Bayo Ojulari, praised NLNG’s shareholders and the federal government for their commitment, describing the agreements as “a giant step towards sustainable gas supply and value creation.”
“These GSAs create opportunities for growth in both local and international markets. They are based on collaboration and risk-sharing, which are key to achieving Mr President’s Decade of Gas vision,” he said.
Ojulari further commended President Tinubu’s Executive Orders supporting gas development and business reforms, pledging that NNPC will fast-track their implementation in partnership with stakeholders.
NLNG Managing Director, Philip Mshelbila, also described the agreements as a “game-changer” for Nigeria’s gas industry, saying they would restore supply reliability, boost local production, and support industrialisation and economic expansion.
The NLNG, a joint venture incorporated with NNPC Ltd holding 49 per cent, Shell Gas 25.6 per cent, TotalEnergies 15 per cent, and Eni International 10.4 per cent, said the new GSAs mark a strategic effort to secure feedgas for its Bonny Island plant and future expansion.
“This development aligns with the Federal Government’s Decade of Gas initiative, which places natural gas at the heart of Nigeria’s industrialisation and energy transition drive,” the company said.
Meanwhile, Lokpobiri restated that Tinubu’s administration is focused on making Nigeria a leading global investment destination for oil and gas. He noted that international companies are being encouraged to return through competitive incentives and improved regulatory frameworks.
In a separate statement, his media aide, Nneamaka Okafor, confirmed that the minister made the remarks while hosting a delegation from Vaalco Energy, a United States-based oil and gas exploration firm.
Lokpobiri explained that reforms introduced through the Petroleum Industry Act (PIA) of 2021, alongside tax holidays, reduced royalty rates, and incentives for gas development, have made Nigeria more attractive to investors.
He disclosed that Vaalco has already indicated interest in re-entering Nigeria through the acquisition of Svenska’s Production Sharing Contract (PSC) interest in Oil Mining Lease (OML) 145.
“The government is committed to providing globally competitive incentives to attract and retain investors. We are delighted to welcome back companies like yours, as your renewed presence will help increase production and deliver on our national energy objectives,” he said.
Vaalco’s Managing Director, Pieter Van der Groen, affirmed the company’s commitment, saying Nigeria remains a key investment hub. “We are here to return in a stronger way, with access to funding as a US-listed company, to invest in and develop the assets we acquire,” he noted.
